Solar Thermal Collector Market Size, Share & Industry Analysis, By Collector Type (Unglazed, Flat Plate Collectors {FPC}, Evacuated Tube Collectors {ETC}, and Concentrating Solar Thermal Collectors {CST}) By Installation (Ground Mounted Systems and Rooftop Mounted Systems), By Temperature Range (Low {≤80°C}, Medium {80–250°C}, and High {>250°C}) by End-User (Residential, Commercial, Industrial, and Utility) and Regional Forecast, 2026-2034

The global solar thermal collector market size was valued at USD 4.85 billion in 2025. The market is projected to grow from USD 5.08 billion in 2026 and is expected to reach USD 7.33 billion by 2034, exhibiting a CAGR of 4.68% during the forecast period.

Solar thermal collector is an engineering device that absorb solar radiation and convert it into thermal energy, which is then transferred to a working fluid for use in various applications, including domestic hot water, space heating, district heating, and industrial process heat. The solar thermal market is an established yet evolving segment of the renewable energy industry, focusing on harnessing solar radiation to generate heat for residential, commercial, and industrial applications.

Demand for solar thermal collectors is expected to grow steadily due to the global push for decarbonization in the heat sector, rising energy prices, and the need to reduce emissions from building and industrial processes, which together account for a significant share of global energy consumption. Supportive renewable heat policies, growing retrofit activity in mature markets, strong solar resource availability in emerging regions, and increasing interest in low-carbon industrial heat solutions are collectively driving sustained adoption across both developed and developing economies.

Top companies, such as Viessmann, Ritter Solar, TVP Solar, Sunrain, and others, are shaping the solar thermal collector market by scaling high-efficiency collector production, expanding installer and distribution networks, and accelerating large commercial, district heating, and industrial process heat deployments. Major players are investing in improving absorber coatings, higher-performance evacuated and vacuum technologies, and standardized large-format modules to reduce installed costs and boost output in real-world conditions.

Solar Thermal Collector Market Trends

Transition from Pilot Projects to Utility-Scale Deployments is a Major trend in Market

Industrial solar heat is scaling up in project size as developers are transitioning from pilots to multi-megawatt (MW) fields that can meaningfully displace boiler fuel, especially where sites have steady daytime heat loads and decarbonization targets. In 2023, the number of new SHIP (Solar Heat Industrial Process) systems increased by 116 systems, totaling 94 MWth of newly installed thermal capacity. This represents the same number of systems as in 2022, but with a much higher total capacity.

Overall, this shift highlights that Solar Heat for Industrial Processes (ships) is transitioning from a pilot-driven niche into a scalable, bankable decarbonization solution, with larger project sizes improving fuel displacement impact, project economics, and investor confidence in solar thermal as a long-term industrial heat technology.

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MARKET DYNAMICS

Market Drivers

Attractive Policies and Incentives are Major Drivers Supporting Solar Thermal Adoption

Policy and incentives drive solar thermal adoption by making projects financially viable and facilitating easier approval, particularly in cost-sensitive residential and commercial segments. For instance, in France, MaPrimeRenov updates strengthen adoption by improving grant-to-finance stacking, which directly reduces the affordability barrier for capex-heavy solar water heating. The U.K.’s continued funding and clarity for clean heat grants sustain retrofit momentum, indirectly supporting solar thermal as part of whole-building packages and hybrid heating solutions.

Market Restraints

High Installation Complexity and System Integration Challenges Compared to Alternative Technologies

Solar thermal systems are often perceived as “harder to install” than alternatives including PV as they are a heat and fluid system, not just electrical modules. A typical solar thermal project requires hydraulic design, plumbing, insulation, freeze/overheat protection, and careful integration with existing hot water or space heating equipment. Thus, integration complexity is especially high in retrofits, where existing boilers, tanks, and piping layouts may be non-standard. Space constraints for storage tanks, routing of insulated pipe runs, roof penetrations, and structural considerations further add to the effort and cost. Moreover, for large commercial and industrial systems, complexity increases again due to the need for process integration, safety controls, redundancy, performance guarantees, and often thermal storage, which lengthens design cycles and increases engineering costs.

Market Opportunities

Solar District Heating with Seasonal Thermal Storage to Create Lucrative Growth Opportunities in Market

Solar district heating, combined with seasonal thermal storage, represents a high-impact growth opportunity for the solar thermal collector market growth, enabling large-scale, low-cost renewable heat supply to urban energy networks. By deploying expansive solar collector fields linked to pit, tank, or borehole thermal storage, utilities can capture surplus summer heat and deliver it during colder months, significantly reducing fossil fuel dependence in district heating systems. This model has proven particularly effective in Europe, where high heat density, supportive policy frameworks, and long asset lifetimes make large solar thermal installations economically attractive, while also offering grid relief by delivering decarbonized heat without increasing electricity demand.

For instance, in 2024–2025, Europe continued to lead the deployment of large solar district heating plants paired with seasonal storage, with several multi-MWth projects transitioning from planning to construction particularly in Denmark, Germany, and the Netherlands as municipalities accelerate the phase-out of fossil fuels in their district heating networks. Recent projects are increasingly integrating Pit Thermal Energy Storage (PTES) with collector fields exceeding 50–100 MWth, thereby improving seasonal utilization and reducing levelized heat costs.

Market Challenges

Electrification First Policies Overshadow Solar Thermal Application-Specific Advantages

Electrification policies and incentives are increasingly favoring PV and heat pumps as default decarbonization solutions, often sidelining solar thermal early in project planning. Despite its ability to deliver high efficiency and low-cost heat for domestic hot water, commercial buildings, district heating, and low-to-medium temperature industrial processes with minimal grid impact, solar thermal systems are frequently perceived as more complex to design and integrate. This perception is reinforced by incentive structures that prioritize electricity use over renewable heat generation, limiting solar thermal’s competitiveness for funding and policy attention, even though hybrid systems combining solar thermal with heat pumps or boilers can provide superior efficiency, resilience, and long-term lifecycle economies.

Segmentation Analysis

By Collector Type

Flat Plate Collectors Dominate Market Due to their Cost-Performance Balance and Scalability

Based on type, the market is segmented into unglazed, flat plate collectors (FPC), evacuated tube collectors (ETC), and concentrating solar thermal collectors (CST).

Evacuated tube collectors have dominated the market and are showing strong growth in regions where higher operating temperatures and improved performance under colder or variable conditions are crucial. They are frequently preferred for applications requiring higher year-round yield and better performance at higher temperature differentials, supporting demand in both building hot water and selected industrial low-to-medium temperature uses.

Flat plate collectors are expected to hold a significant share due to their strong balance of cost, durability, and performance across residential and commercial hot water applications, as well as their suitability for large-area deployment in district heating systems. Flat plate systems are widely standardized, making them easier to procure and integrate at scale.

Concentrating solar thermal collectors are projected to experience the fastest momentum over the forecast period as industrial decarbonization accelerates and more projects target medium- to high-temperature heat for Solar Heat for Industrial Processes (SHIP). Their ability to supply higher temperatures improves fuel displacement potential and expands solar thermal’s addressable market beyond traditional hot water. The concentrating solar thermal collectors are projected to grow at a CAGR of 6.78% during the forecast period.

By Installation

Rooftop Installations Lead Market Owing to Roof Suitability and Installer Availability

Based on installation, the market is segmented into rooftop and ground-mounted systems.

The rooftop installations hold the majority of the solar thermal collector market share, as the installed base remains dominated by building-level hot water and space heating systems, especially in residential and commercial buildings. This segment benefits from distributed demand but remains sensitive to roof suitability, installer availability, and the complexity of retrofits.

The ground-mounted installations are expected to grow faster than rooftop systems as they are tied to scaling opportunities in district heating networks, industrial sites, and large commercial campuses. Ground-mounted fields enable larger collector area per site, easier maintenance access, and better integration with thermal storage making them increasingly attractive for utility-scale heat projects and industrial heat decarbonization. The ground-mounted segment is expected to register the fastest CAGR of 6.62% from 2026 to 2034.

By Temperature Range

Low (≤80°C) Segment Leads Market, Driven by Established Residential and Commercial Usage

Based on temperature range, the market is segmented into low (≤80°C), medium (80–250°C), and high (>250°C).

The low (≤80°C) segment holds the largest share as it covers the bulk of global demand for domestic hot water and many commercial hot-water applications. It is the most mature segment, supported by standardized collectors and well-understood system designs.

The medium (80–250°C) segment is expected to grow at the highest pace, supported by the adoption of industrial process heat and increased deployment in district heating networks, where higher delivery temperatures improve the usable heat contribution. This band is central to the market’s shift from traditional hot-water systems toward higher-value industrial and networked heat applications.

The high (>250°C) segment accounted for the highest CAGR of 8.19% during the forecast period of 2026-2034.

By End-User

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Residential Segment Accounts for Largest Share Due to Widespread Adoption of Domestic Hot Water Systems

Based on end-user, the market is segmented into residential, commercial, industrial, and utility.

The residential segment currently accounts for the largest share, driven by domestic hot water demand and the prevalence of standardized small systems in high-volume markets. However, growth is relatively mature in developed economies and increasingly depends on retrofit programs and incentives.

The Industrial segment is expected to be the fastest-growing end-user category during the forecast period, driven by increasing corporate decarbonization commitments and the need to reduce fossil fuel use for low- to medium-temperature processes. This segment benefits from larger system sizes, better utilization, and growing confidence in performance guarantees as project pipelines mature. The industrial segment is expected to account for the highest CAGR of 6.33% during the forecast period of 2026-2034.

Solar Thermal Collector Market Regional Outlook

By geography, the solar thermal collector market has been studied geographically across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific

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Asia Pacific accounted for the largest share globally, valued at USD 3,362.42 million in 2025 and projected to reach USD 3,502.57 million in 2026. The region’s scale is supported by a large installed base of solar hot water systems, continued replacement demand, and steady uptake across both residential and commercial hot water applications. In the region, India and Japan both accounted for USD 270.32 million and USD 177.81 million, respectively.

China Solar Thermal Collector Market

China remains the dominant contributor within the Asia Pacific region, estimated at USD 2,508 million in 2025 and projected to reach USD 2,594.64 million in 2026. The demand is anchored in large-scale domestic hot water deployment and a substantial replacement market, supported by manufacturing scale and broad availability of evacuated-tube systems.

North America

North America accounted for a modest share, valued at USD 157.91 million in 2025 and projected to reach USD 164.41 million in 2026. The region is relatively mature, with demand anchored in replacement-led rooftop systems (notably low-temperature applications) and selective growth in commercial hot water. However, broader adoption is moderated by strong competition from PV and heat pumps, fragmented incentives, and higher installed-cost sensitivity.

U.S. Solar Thermal Collector Market

The U.S. solar thermal collector market was valued at USD 134.22 million in 2025 and is projected to reach USD 139.17 million in 2026, accounting for roughly 2.83% of the global market size.

The demand is primarily supported by building-level hot water applications especially in multi-family housing, hospitality (hotels/resorts), healthcare facilities, laundries, and institutional buildings where hot-water loads are consistent and solar thermal can deliver predictable fuel displacement.

Europe

Europe accounted for a significant share, representing a high-value, policy-supported market, valued at USD 791.84 million in 2025 and projected to reach USD 855.49 million by 2026. The growth is supported by building retrofits, renewable heat support mechanisms, and the acceleration of large commercial / district heating solar thermal fields, with increasing interest in industrial heat solutions—making Europe one of the most structurally bullish regions for solar thermal revenue expansion.

Germany Solar Thermal Collector Market

Germany's solar thermal collector market was valued at USD 168.94 million in 2025 and is projected to reach USD 184.11 million in 2026. The demand is supported by a strong foundation of building energy retrofits, a well-developed heating industry ecosystem, and continued interest in integrating renewable heat sources for residential and commercial buildings.

U.K. Solar Thermal Collector Market

The U.K. solar thermal collector market was estimated to be worth USD 97.24 million in 2025, accounting for approximately 2% of the global solar thermal collector market.

Latin America & Middle East & Africa

Latin America is a steadily expanding emerging market, valued at USD 380.21 million in 2025 and projected to reach USD 397.30 million in 2026. The demand is driven by commercial hot-water applications (such as hospitality, institutions, and multi-family), favorable solar resources, and selective industrial uptake. However, growth remains influenced by financing availability, policy continuity, and the depth of the installer ecosystem. In the Middle East & Africa region, the GCC is set to reach 38.73 million in 2025.

GCC Solar Thermal Collector Market

The GCC solar thermal collector market is projected to reach around USD 38.73 million in 2025, representing roughly 0.8% of global solar thermal collector market

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Continuous Innovation and Scale-Up by Leading Manufacturers is Driving Market Growth

The global solar thermal collector market is moderately fragmented, with a mix of large international brands and strong regional manufacturers supplying collectors, balance-of-system components, and turnkey solutions tailored to local climate, building stock, and heat-demand profiles. Leading players are actively investing in higher-efficiency designs, standardized large-scale formats, and industrial-grade solutions to expand adoption beyond traditional residential hot-water systems into district heating and Solar Heat for Industrial Processes (SHIP). For example, SUNRAIN is promoting large-size (~15 m²) flat-plate collectors engineered for higher-temperature, large-field installations with crane-enabled mounting to reduce installation time and improve project economics.

List of Key Solar Thermal Collector Companies Profiled

• Viessmann (Germany)
• GREENone Tec (Austria)
• Aalborg CSP (Denmark)
• SUNRAIN (China)
• TVP Solar (Switzerland)
• Heliodyne (U.S.)
• SunEarth (U.S.)
• SunMaxx Solar (U.S.)
• Ritter Solar / Ritter Solartechnik (Germany)
• Vaillant Group (Germany)

KEY INDUSTRY DEVELOPMENTS

• December 2025: Absolicon continued scaling its industrial solar thermal proposition by promoting commercialization enablers such as a production-line model for its T160 concentrating solar collector (heat up to 160°C), alongside market-facing initiatives linking solar thermal to large funding mechanisms (e.g., heat-auction style schemes), reinforcing the push toward bankable industrial heat deployment.
• July 2025: GREENoneTEC published updated technical documentation for its PVT (photovoltaic-thermal) collector platform (PVT FLEX), signalling accelerating innovation toward hybrid collectors that generate electricity and heat in one module a pathway increasingly positioned to compete in electrification-led markets while preserving solar thermal heat output.
• May 2025: Solar Heat Europe marked the official opening of the Dorkwerd Solar Thermal Park in Groningen described as the largest solar thermal district heating installation in the Netherlands featuring 24,000 collectors supplied by TVP Solar to deliver renewable heat to thousands of households, showcasing how utility-scale collector deployments are becoming mainstream.
• May 2025: SUNRAIN highlighted its large-format, 15 m² flat-plate collector, engineered for large solar thermal systems operating at higher temperatures. The collector features an absorber design optimized for performance, along with a mounting concept that enables time-saving crane installation and faster hydraulic connection, directly targeting lower installed costs at scale.
• February 2025: Ritter Solartechnik released its 2025/2026 OEM product catalogue for evacuated-tube collectors, featuring updated offerings such as CPC OEM, CPC INOX, and CPC XL INOX, which reflect continued product refinement and standardization for higher-performance evacuated tube solutions across OEM and project markets.

REPORT COVERAGE

The global solar thermal collector market report provides a detailed analysis of the market, focusing on key aspects such as leading companies, product processes, and Porter’s Five Forces analysis. Additionally, the report provides valuable insights into market trends and highlights key industry developments. In addition to the factors mentioned above, the report also encompasses several factors that contributed to the market's growth in recent years.

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